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Can I claim a tax deduction on a loan used to purchase tools for work.

Newbie

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Hi. I know one can claim tax deductions on the interest for loans that are used to gain income. I am wondering if I can still claim this tax deduction on the interest a pay for a personal loan in which a portion of that loan was used to purchase tools and equipment required for my work. This work is also my biggest source of income for this financial year.

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ATO Certified Response

ATO Community Support

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Hi @SimmoM8,

 

Yes, you can claim the portion of the interest on the loan that related to the purchase of the tools and equipment required for your work. For example, if 50% percent of the amount borrowed was used to purchase tools and equipment required for your work you would claim 50% of the interest on the loan.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @SimmoM8,

 

Yes, you can claim the portion of the interest on the loan that related to the purchase of the tools and equipment required for your work. For example, if 50% percent of the amount borrowed was used to purchase tools and equipment required for your work you would claim 50% of the interest on the loan.